Global economy would not recover right away even with a coronavirus vaccine, according to UBS Chairman Axel Weber.
He said that it will take time for the global economy to return to pre-crisis levels.
“Going forward, I’m not pessimistic. I mean, eventually, we’ll get through this. But we should not be under the illusion that it will happen fast, it will take some time,” Weber said during an interview with CNBC’s Joumanna Bercetche Tuesday.
“It would be at least a year to go back to pre-crisis levels of GDP (gross domestic product). It’ll take another year or two to be anywhere near getting unemployment and pre-crisis growth back and so it would be quite a long recovery that we’re facing,” he said.
Regarding the coronavirus vaccine from Pfizer, Weber said that “it was definitely good news.” However, it would take time to implement vaccination programs at a local and international level.
“We’ve been waiting for some good news for some time now ... And the latest news has been really taken well by the market. But you know, you have to take this with a grain of salt,” Weber stressed.
“The disappointing part of the news was that the much lower than expected number of vaccinations that can be produced in a year, and if you look at the rollout, that will happen, it’s going to take some time, ’til we move to roll this out," he added.
“You know, if dispensing that way ... actually has an impact on economic activity, it will eliminate some tail risks, and some of the human suffering will be much improved as a result of it. But it’s a long haul (before) we get anything that is close to what people call mass immunity,” he said.
Impact of the vaccine on global economy
Pfizer Covid vaccine found over 90% effective at seven days after the second dose, according to the company’s announcement.
According to Pfizer and BioNTech’s statement, their coronavirus vaccine was more than 90% effective in responding to Covid-19 among those without proof of prior infection. They consider the development as “a great day for science and humanity.”
“I think we can see light at the end of the tunnel,” Pfizer Chairman and CEO Dr. Albert Bourla said during an interview on CNBC’s Meg Tirrell on “Squawk Box.” “I believe this is likely the most significant medical advance in the last 100 years, if you count the impact this will have in public health, global economy.”
The statement comes as drugmakers and research centers race to produce a safe and effective vaccine to control the coronavirus pandemic that has killed over 1.2 million lives across the world.
Scientists look forward to a coronavirus vaccine that is at least 75% effective, while White House coronavirus advisor Dr. Anthony Fauci said one that is 50% or 60% effective is already acceptable.
Pfizer’s findings were based on the initial interim efficacy analysis held by an external and independent Data Monitoring Committee from phase three clinical study. The group monitors U.S. clinical trials to make sure that participants are safe.
